Vail Resorts Inc. (NYSE:MTN) Q1 2020 Earnings Conference Call - Final Transcript

Dec 09, 2019 • 05:00 pm ET

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Vail Resorts Inc. (NYSE:MTN) Q1 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good day and welcome to the Vail Resorts First Quarter Fiscal 2020 Earnings Conference Call. Today's conference is being recorded. At this time, I'd like to turn the conference over to Mr. Katz. Please go ahead, sir.

Executive
Robert A. Katz

Thank you. Good afternoon, everyone. Welcome to our fiscal 2020 first quarter earnings conference call. Joining me on the call this afternoon is Michael Barkin, our Chief Financial Officer.

Before we begin, let me remind you that some information provided during this call may include forward-looking statements that are based on certain assumptions and are subject to a number of risks and uncertainties as described in our SEC filings, and actual future results may vary materially. Forward-looking statements in our press release issued this afternoon along with our remarks on this call are made as of today. December 9, 2019 and we undertake no duty to update them as actual events unfold.

Today's remarks also include certain non-GAAP financial measures. Reconciliations of these measures are provided in the tables included with our press release, which along with our quarterly report on Form 10-Q were filed this afternoon with the SEC and are also available on the Investor Relations section of our website, www.vailresorts.com. So with that said, let's turn to our fiscal 2020 first quarter results.

Overall we are pleased with our results in the first fiscal quarter. Our Australian resorts delivered a strong performance with another record year at Perisher on an Australian dollar basis and very strong results in our first year of operations in Falls Creek and Hotham.

Our strong Epic Australia Pass sales, good conditions and the addition of the Leichhardt chairlift at Perisher supported our continued momentum in the Australian market. Our consolidated results from Perisher were negatively impacted by the strong US dollar, which created an approximate $2 million resort reported EBITDA headwind from currency translation in the quarter relative to the prior year results.

Whistler Blackcomb's summer business performed very well, with strong performance in its world-class mountain biking operations and sightseeing, supported by the addition of the new Cloudraker Skybridge. Our US Epic Discovery business continues to grow and generate strong financial returns. Our lodging business experienced mixed results with continued success from our properties at Grand Teton Lodge Company, partially offset by softer results at our Colorado properties in part due to weaker group demand in comparison to the prior year period.

Turning now to our 2019/2020 North American pass sales for our resorts and early season indicators. As we approach the end of our selling period, season pass sales for the North American ski season are up approximately 17% in sales dollars and approximately 22% in units through December 2, 2019 compared to the prior year period ended December 3, 2018. The results include Military Pass sales and Peak Resorts pass sales in both periods and are adjusted to eliminate the impact of foreign currency by applying an exchange rate of $0.75 between the Canadian dollar and US dollar in both periods for Whistler